Germany Energy Storage Systems Industry Overview
|CAGR:||> 10 %|
*Disclaimer: Major Players sorted in no particular order
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Germany Energy Storage Systems Market Analysis
The energy storage market in Germany is expected to witness a CAGR of more than 10% during the forecast period.
The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns and delays in projects. However, the market rebounded in 2021.
- Over the medium term, factors such as the increasing share of renewables in the electricity generation mix, a decline in the cost of storage batteries and solar photovoltaic panels, supportive government policies like low-interest rates on loans, and investment grants on battery systems are driving the German energy storage market.
- On the other hand, the problem of creating adequate and intelligent power grids across the country to harness and store the growing renewable energy remains a challenge, which may hinder the growth of the market.
- However, Germany is planning to install 30 GW offshore wind energy turbines by 2030, 40 GW by 2035, and 70 GW by 2045, which may require large-scale energy storage systems, thus creating a vast opportunity for companies in the coming years.
Germany Energy Storage Systems Industry Segments
Energy storage is the process of capturing the energy produced for use at a later time to reduce imbalances between energy demand and production. A device that stores energy is generally called an accumulator or battery.
The German energy storage market is segmented by type and application. By type, the market is segmented into batteries, pumped-storage hydroelectricity (PSH), thermal energy storage (TES), and other types. By application, the market is segmented into residential and commercial and industrial. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
|Pumped-Storage Hydroelectricity (PSH)|
|Thermal Energy Storage (TES)|
|Commercial and Industrial|
Germany Energy Storage Systems Market Trends
Battery Systems for Storage of Renewable Energy to Witness Significant Growth
- The deployment of the battery energy storage system is anticipated to increase in the coming years due to the changes in the power sector. The country has witnessed a significant increase in renewable energy installation in recent years. Lithium-ion batteries are expected to have higher demand during the forecast period.
- With the declining costs of lithium-ion batteries, the demand for batteries registered a substantial rise for residential and commercial uses, especially in the electronics and vehicle markets. Battery costs in the country have declined by more than half, and this trend is expected to continue in the coming years.
- As of March 2021, there were over 300,000 residential battery systems in the country, with a majority of these connected to solar energy.
- With more than 58.4 GW of solar capacity and more than 63.7 GW of wind energy capacity in 2021, the requirement for a storage system is expected to grow during the forecast period.
- Such development in the renewable energy sector and reduction in battery prices are expected to significantly propel the demand for battery systems to store renewable energy.
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Upcoming Projects and Government Initiatives to Drive the Market
- Several public and private initiatives in the country are cooperating to develop energy storage technologies. To support the demand for storage systems and renewable energy, the federal government is making PV battery system investment highly attractive by providing unique incentives, including low-interest rates on loans and investment grants.
- The energy storage market in Germany has experienced a massive boost in recent years, majorly due to the country’s ambitious energy transition project, Energiewende. The boom in batteries and other storage technologies is expected to impact Germany’s energy transition significantly.
- Installed wind energy capacity in Germany has also witnessed significant growth in recent years, growing from 26.9 GW in 2010 to 63.7 GW in 2021.
- In October 2022, Fluence Energy and TransnetBW announced plans to develop a 250 MW battery energy storage (BES) as a transmission project in Germany. The Netzbooster project is expected to be completed in 2025.
- Such developments and government initiatives are likely to boost the demand for energy storage in the country during the forecast period.
Germany Energy Storage Systems Market Competitor Analysis
The German energy storage market is partially consolidated. Some of the major companies include (in no particular order) Enel SpA, Renewable Energy Systems Ltd, STEAG GmbH, and Fraunhofer-Gesellschaf, and Redt Energy PLC.
Germany Energy Storage Systems Market Top Players
Renewable Energy Systems Ltd
Redt Energy PLC
*Disclaimer: Major Players sorted in no particular order
Germany Energy Storage Systems Market Recent Developments
- November 2022: RWE announced its plans to install 220 MW of battery storage capacity at two decommissioned lignite-fired and coal-fired power plants in North Rhine-Westphalia, Germany, for around USD 147 million. The construction of this project is scheduled to start in 2023, and commissioning is planned for 2024.
- October 2022: Fluence Energy GmbH and TransnetBW GmbH announced the deployment of the world’s largest battery-based energy storage-as-transmission project. Fluence Energy GmbH is a leading company in energy storage products and services, and TransnetBW GmbH is Germany's leading transmission system operator. With this project, both companies aim to improve energy security and significantly support Germany’s energy transition pathway by increasing the efficiency of the existing grid infrastructure.
Germany Energy Storage Systems Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 PESTEL Analysis
5. MARKET SEGMENTATION
5.1.2 Pumped-Storage Hydroelectricity (PSH)
5.1.3 Thermal Energy Storage (TES)
5.1.4 Other Types
5.2.2 Commercial and Industrial
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Enel SpA
6.3.2 Renewable Energy Systems Ltd
6.3.3 STEAG GmbH
6.3.5 Redt Energy PLC
6.3.6 Sungrow Power Supply Co. Ltd
6.3.7 Fluence Energy Inc.
6.3.8 RWE AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Germany Energy Storage Systems Market Research FAQs
What is the study period of this market?
The Germany Energy Storage Systems Market market is studied from 2019 - 2027.
What is the growth rate of Germany Energy Storage Systems Market?
The Germany Energy Storage Systems Market is growing at a CAGR of >10% over the next 5 years.
Who are the key players in Germany Energy Storage Systems Market?
Enel S.p.A, Renewable Energy Systems Ltd , STEAG GmbH , Fraunhofer-Gesellschaf , Redt Energy PLC are the major companies operating in Germany Energy Storage Systems Market.
Germany Energy Storage Systems Industry Reports
In-depth industry statistics and market share insights of the Germany Energy Storage Systems sector for 2020, 2021, and 2022. The Germany Energy Storage Systems research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Germany Energy Storage Systems report PDF.